You walk into a house that feels dialed in: finished basement, brand-new bath, recessed lights, maybe even a new deck. The listing says “updated.” The seller says “we did it right.”
Then, in the least dramatic email of the entire transaction, somebody asks a question that can blow up your timeline, your loan, or your pricing:
“Can you send the permits and final inspections?”
In West Michigan, unpermitted work is one of those problems that often stays invisible until the exact moment it becomes expensive. This is not a morality play about DIY. It’s a risk management conversation about proof in a world where lenders, appraisers, insurers, and municipalities can all have a say.
What “unpermitted work” really means (and why it matters at closing)
In Michigan, permits and inspections aren’t just for new builds. The state construction code framework requires permits for new construction and, in many cases, alterations and trade work like electrical, plumbing, and mechanical. The exact scope depends on what you’re doing and where the property is, but the concept is consistent: some work requires a permit, and the enforcing agency wants a record. ([legislature.mi.gov](https://www.legislature.mi.gov/documents/mcl/pdf/mcl-act-230-of-1972.pdf?utm_source=openai))
Example situations that frequently trigger permit questions in real transactions:
- Finished basements (especially when new bedrooms, egress windows, or added bathrooms are involved)
- Electrical changes like a panel swap, added circuits, new kitchen loads, or recessed lighting. Michigan’s code requires an electrical permit for alterations/additions to electrical conductors/equipment. ([michigan.gov](https://www.michigan.gov/lara/bureau-list/bcc/sections/permit-section/permits/electrical-permit-information?utm_source=openai))
- HVAC installs, water heaters, and other mechanical changes (jurisdiction-dependent)
- Decks and structural changes
- Garage conversions or “bonus rooms” that quietly changed the use of space
Here’s the part that gets people: even if the work is physically fine, the transaction risk is the gap between what exists and what can be documented.
How this blows up a deal in the real world
There are a few predictable ways unpermitted work turns into a negotiation (or a cancellation):
1) Appraisal and underwriting questions
If a home looks like it gained finished square footage, extra bedrooms, or an extra bath, the next question is often whether it’s legally recognized and safely built. Appraisers don’t “approve” permits, but they do flag inconsistencies and conditions. Lenders can require clarification or repairs before closing. You can go from “clean deal” to “paperwork scramble” fast.
2) Insurance underwriting, claims risk, and rebuild questions
Insurance is not just about a premium quote. Insurers underwrite risk. When there’s unpermitted electrical or questionable additions, carriers can ask questions, exclude certain conditions, or make the buyer jump through hoops. The painful version of this is discovering the issue during underwriting or after a claim, when the stakes are higher.
3) Municipal enforcement and open cases
Sometimes it’s not even about old work. It’s about open enforcement cases or an unresolved permit that never reached final inspection. For example, the City of Grand Rapids’ Citizen Access portal explicitly allows users to search for open enforcement cases and access planning applications/records. ([grandrapidsmi.gov](https://www.grandrapidsmi.gov/grow-and-thrive/development-center/citizen-access-guide/?utm_source=openai))
If you’re buying in a municipality that has an active file on the property, you want to know early, not three days before closing.
4) The seller’s “fix” is not instant
People assume the solution is simple: “Just pull a permit now.” In practice, retroactive permits can trigger:
- Opening walls/ceilings so inspectors can verify work
- Engineering documentation
- Time delays (and sometimes contractor scheduling chaos)
- Required corrections that weren’t part of anyone’s budget
Sometimes it’s still worth it. But it’s not always the quick checkbox people expect.
The West Michigan twist: jurisdiction is everything
West Michigan is a patchwork of cities, townships, and counties. Who issues permits and keeps records varies by location and by trade.
Two practical examples:
- In the City of Grand Rapids, Citizen Access is the City’s online permit portal, used for submitting permit applications, scheduling inspections, and searching records and enforcement cases. ([grandrapidsmi.gov](https://www.grandrapidsmi.gov/grow-and-thrive/development-center/citizen-access-guide/?utm_source=openai))
- Across many Michigan municipalities, BS&A Online is used to display municipal records online (with the important caveat that the municipality is the source of truth for accuracy). ([bsaonline.com](https://bsaonline.com/Home/LandingPage?utm_source=openai))
Also, for electrical work specifically, Michigan notes that code enforcement may be conducted by the state, county, or local unit of government, and the permit application must go to the appropriate enforcing agency. ([michigan.gov](https://www.michigan.gov/lara/bureau-list/bcc/sections/permit-section/permits/electrical-permit-information?utm_source=openai))
Translation: you can’t assume “the city” has all the answers, and you can’t assume the seller knows which office holds the file.
My practical pre-check: a permit-history triage you can do before you’re in trouble
This is the process I like because it respects reality: you want enough information to price risk and prevent surprises, without turning every offer into a 6-week research project.
Step 1: Identify the jurisdiction (don’t guess)
City vs. township matters. So does the trade jurisdiction. Start by confirming where the property sits and which office enforces building and trades.
Step 2: Look for the “big three” red flags
- New finished space (basement finish, attic finish, garage conversion)
- New wet areas (added bath, relocated laundry, wet bar)
- Major electrical (panel changes, lots of new recessed lights, EV charger, hot tub wiring)
If you see these, your default assumption should be: “There might be permits, and we should ask early.” Michigan’s electrical permit guidance is clear that alterations/additions require a permit. ([michigan.gov](https://www.michigan.gov/lara/bureau-list/bcc/sections/permit-section/permits/electrical-permit-information?utm_source=openai))
Step 3: Search what you can online
If you’re in Grand Rapids, start with Citizen Access. It’s designed for permits, inspections, and record searches. ([grandrapidsmi.gov](https://www.grandrapidsmi.gov/grow-and-thrive/development-center/citizen-access-guide/?utm_source=openai))
For other municipalities, see if they publish records through a platform like BS&A Online (again, with the disclaimer that the municipality controls the data). ([bsaonline.com](https://bsaonline.com/Home/LandingPage?utm_source=openai))
Step 4: Ask for “finals,” not just “permits”
A permit number alone doesn’t mean the work passed inspection. What you want is evidence of final inspection approval (or that the permit was closed).
In many cases, this is where deals get sticky: a permit was opened, some work was done, and then the project got busy, money got tight, or the contractor disappeared. The permit never closed. Now it’s your buyer’s problem unless you address it.
Step 5: Use the inspection period strategically
This is not legal advice, but practically speaking: if permits matter to your risk tolerance (or your lender’s), treat permit documentation like any other due diligence item. Get it early enough that you have options: renegotiate, require a fix, extend, or walk.
If you’re selling: don’t wait for the buyer to weaponize your own upgrades
“Updated” sells houses. But it can also create the perfect opening for a buyer to retrade if documentation is missing.
Seller-side moves that often pay off:
- Pull your permit history before you list, so you know what’s on paper and what isn’t.
- Collect receipts and contractor information, even if permits are not available. It’s not a substitute, but it strengthens credibility.
- Decide in advance what you’ll do if a buyer asks: Are you willing to pursue a retroactive permit? Offer a credit? Provide access for further evaluation?
Sometimes the best strategy is simple honesty: price the home knowing you have an “updated but undocumented” element and avoid overreaching on value.
The advice that saves the most time: don’t argue about permits emotionally
In a negotiation, “my uncle is an electrician” and “it’s been fine for five years” are emotionally satisfying, but they don’t answer the actual transaction questions:
- Can the buyer’s lender live with this?
- Can the buyer’s insurer live with this?
- Can the buyer resell without stepping into the same mess?
- If something fails, who owns the risk?
The cleanest deals treat permits like what they are: documentation that reduces uncertainty.
Want me to do a quick permit-risk read on a house you’re considering?
If you send me the address (and tell me what upgrades caught your eye), I’ll tell you where I’d start looking for permit history in that jurisdiction and what questions I’d ask before you write an offer. The goal is not to turn every home into a forensic investigation. It’s to avoid the kind of surprise that shows up after inspection, after appraisal, or the week of closing.